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Consumer Markets and Buyer Behavior

▪ What / Why / When / Where / How

consumers make purchases

▪ Consumer decision making process

Consumer Markets and Buying Behavior ▪ Starts with a need

[Chapter 5] ▪ Attitudes and values influencing buyer

behaviors

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Model of Consumer Behavior Factors Influencing Consumer Behavior

- The buying behavior of final consumers – individuals and
households who buy goods and services for personal
consumption
- Most buying decisions are made at an unconscious level –
Black box
- Central Question: How do consumers respond to marketing
efforts the company might use?
- What / Where / How / How much / When / Why Consumers Buy
- Attitudes and preferences - Brand engagements and relationships

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Factors Influencing Consumer Behavior Factors Influencing Consumer Behavior

Cultural Factors Social Factors

Culture • Family - roles played by members in the purchase process:

- the learned values, perceptions, wants, and behavior from initiator / influencer / decider / buyer / user
family and other important institutions • Groups
- the most basic cause of a person’s wants and behavior
Subculture Membership Groups Aspirational Groups Reference Groups

• Groups with direct • Groups an individual • Groups that form a

- groups of people within a culture with shared value systems influence and to which a wishes to belong to comparison or reference in
based on common life experiences and situations person belongs forming attitudes or
behavior
Social classes
- society’s relatively permanent and ordered divisions whose • Social roles and status
members share similar values, interests, and behaviors • Word-of-Mouth Influence - impact of opinion leaders
- measured by a combination of occupation, income,
education, wealth, and other variables • Online Social Networks - blogs, social networking sites (e.g.,
Facebook, Twitter, Linkedin), virtual worlds (e.g. Metaverse)

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Factors Influencing Consumer Behavior Factors Influencing Consumer Behavior

Personal Factors Personal Factors
Age and Family Lifecycle Stage

▪ Age and life-cycle stage

▪ PRIZM Lifestage Groups system

▪ 66 segments
▪ 11 life-stage groups

Occupation
Economic Situation (income, wealth, spending, savings, interest rates,...)

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Factors Influencing Consumer Behavior Factors Influencing Consumer Behavior

Personal Factors Personal Factors
fig5

Lifestyle (Activities / Interests / Opinions)

VALSTM places U.S. adult consumers into one of

eight segments based on their responses to
the VALS questionnaire.

Primary motivation (horizontal dimension)

Consumers are primarily motivated by:
◦ Ideals: guided by knowledge and principles.
◦ Achievement: look for products/services that
demonstrate success to their peers.
◦ Self-expression: desire social or physical activity,
variety, risk.
Resources (vertical dimension)
◦ Different levels of resources enhance or constrain a
person’s expression of his or her primary motivation.
◦ Personality traits + key demographics.

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Factors Influencing Consumer Behavior Factors Influencing Consumer Behavior

Personal Factors
Psychological Factors

http://upload.wikimedia.org/wikipedia/en/1/12/Getamac.png

Personality: The unique psychological

characteristics that lead to consistent and
lasting responses to one’s own environment
Motivation
Brand Personality: Specific mix of human
traits that may be attributed to a particular
brand Perception
• sincerity (down-to-earth, honest, cheerful)
• excitement (daring, spirited, imaginative) Learning
• competence (reliable, intelligent, and successful)
• sophistication (upper class and charming)
• ruggedness (outdoorsy and tough) Beliefs and attitudes
Self-concept: Collection of beliefs about
oneself
• People’s possessions contribute to and reflect
their identities

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Factors Influencing Consumer Behavior Perception

Psychological Factors:
Motivation

Motive - A need that is sufficiently

pressing to direct the person to
seek satisfaction
Theory of Human Motivation:
• People often don’t know / can’t
describe why they act as they do
(Freud)
• Human needs are arranged in a
hierarchy, from the most to the
least pressing (Maslow)

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Exposure
Factors Influencing Consumer Behavior
Psychological Factors:
Perception

Perception: the process by which people select, organize, and interpret

information to form a meaningful picture of the world.
People can form different perceptions of the same stimulus because
they:
• Screen out most of the information to which they are exposed
(Selective attention)
• Interpret information in a way that will support what they already
believe (Selective distortion)
• Are more likely to retain the information that supports their
existing attitudes and beliefs (Selective retention)

• Subliminal Perception: Marketing messages that are unconsiously

perceived by the recepient

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Attention Attention
Source Related Factors Source Related Factors

▪ Novel and unusual stimuli are attended (and recalled) more. ▪ Color
▪ However, red is not necessarily always attended more.

Contrast Principle Expectancy Violation

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Differential Sensory Thresholds Differential Sensory Thresholds

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Factors Influencing Consumer Behavior Factors Influencing Consumer Behavior

Psychological Factors Psychological Factors

Learning Attitudes: Learned predispositions to respond toward an

• A change in an individual’s behavior arising from experience object—an individual’s overall feelings toward or evaluation
• Occurs through the interplay of drives, stimuli, cues, responses, of an object.
and reinforcement. Consumers may hold attitudes toward:
Beliefs • Individuals
• Descriptive thoughts (about brands or services) • Brands
• Companies
• May be based on real knowledge, opinion, or faith • Organizations
• Make up product and brand images that affect buyer behavior • Product categories
Attitudes • Retailers
• Advertisements
• A person’s relatively consistent evaluations, feelings and
• Media
tendencies toward an object or idea
• ..........
• Are difficult to change

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Factors Influencing Consumer Behavior Types of Buying Decision Behavior

Psychological Factors
Involvement
Values: Strongly held beliefs.
Attitudes are shaped by personal values. … effort and deliberation given to the purchase decision
▪ Comfortable life ▪ Happiness
▪ Equality ▪ Inner peace
High Involvement Low Involvement
▪ Excitement ▪ Accomplishment
▪ Freedom ▪ Security ▪ Purchase is familiar, past experience
▪ Purchase is infrequent and/or risky
▪ Fun, exciting life ▪ Self-respect
▪ Expensive or self-expressive items ▪ Inexpensive, frequently purchased items

▪ Longer, customized decision process ▪ Routinized buying, quick decision

Appeal to values to change attitudes.
▪ Actively search for information ▪ Selective attention to information

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Types of buying behavior The Buyer Decision Process

A sequential process
High Involvement Low Involvement

...To get a set of benefits from a product or

Significant Differences
Complex Variety Seeking service
Buying Behavior Buying Behavior

....That satisfies person’s perceived needs.

Dissonance-Reducing Habitual
Few Differences
Buying Behavior Buying Behavior

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The Buyer Decision Process The Buyer Decision Process

Need Recognition

1. Need Recognition Need states arise with a discomfort that

motivates action
2. Information Search
▪ Out of stock
▪ Dissatisfaction
3. Evaluation of Alternatives
▪ New needs or wants
▪ Related product purchase
4. Purchase Decision
▪ Market-induced recognition
▪ New products
5. Post-Purchase Behavior
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The Buyer Decision Process The Buyer Decision Process

Need Recognition Information Search

▪ Ability to search
▪ Motivation
• Result of an imbalance between the actual and the desired
▪ Level of involvement
states.
(Task is relevant to existing needs, wants, or values)
▪ Need for cognition
• Usually an internal or external stimulus will lead to need (Individual engages in and enjoys mental activities)
recognition. ▪ Shopping enthusiasm
• Internal stimuli (hunger, thirst, self-esteem…) ▪ Perceived costs vs. Perceived benefits
• External stimuli (TV, advertising, sales promotions…) ▪ Actual cost of the good / service (life-time cost)
▪ Subjective costs associated with search
▪ Opportunity cost of foregone alternatives

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The Buyer Decision Process The Buyer Decision Process

Information Search / Evaluation of Alternatives
Sources of Information
Criteria - Dimensions or attributes of a product or
▪ Internal Search– information stored in memory (if does not service used to compare various alternatives
return enough info)
▪ External Search – actively seeking information from various ▪ Objective criteria - price, warranty, color, size
sources ▪ Subjective criteria - style, appearance, image
▪ Personal sources (most influential)
Friends, relatives, co-workers Consequences – outcomes that result from using a
▪ Market-controlled sources (most information received) product or service
Ads, salespeople, in-store displays
▪ Public sources ▪ Functional consequences – concrete and tangible
Print articles, news reports, online info ▪ Psychosocial consequences – abstract, intangible
▪ Personal experience
Handling, examining, testing, using

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The Buyer Decision Process The Buyer Decision Process

Evaluation of Alternatives Evaluation of Alternatives

- What are the relevant product attributes that go into

evaluation? (Evaluation criteria) ▪ Be included in the ‘’Evoked Set’’
• Depends on the product category (e.g. for furniture: style, price,
material quality , etc.) ▪ Which is highly related to the ‘’Consideration
- How important are these attributes to the consumer? Set’’
• May vary between customers (e.g. For some customers, style and
price more ımportant than quality, or vice versa) ▪ ‘’Top of the mind’’ if mentioned first
- Which products/brands are under consideration?
(Consideration Set)
• e.g., {IKEA, Mudo, Koleksiyon}
- How does each product/brand rate on these attributes?

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The Buyer Decision Process The Buyer Decision Process

Evaluation of Alternatives Purchase Decision

All available brands

Brand A Brand B Brand C Brand D Brand E Purchase Intention
Brand F Brand G Brand H Brand I Brand J

Brand K Brand L Brand M Brand N Brand O

unexpected
attitudes
Evoked Set of Brands situational
of others
Brand B Brand E
factors

Brand F Brand I

Brand M
Purchase

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The Buyer Decision Process The Buyer Decision Process

Post-Purchase Behavior Post-Purchase Behavior

Satisfaction with the purchase depends on whether consumers’ ▪ Ultimate goal: To create satisfied and hopefully
loyal customers.
expectations were met with the products perceived
performance.
▪ Customer satisfaction-Is a function of establishing
appropriate expectations
Perceived Performance < Expected Performance → Dissatisfied
▪ Addressing dissonance: ‘buyer’s remorse’
Perceived Performance >= Expected Performance → Satisfied
-Especially important for high cost/high commitment
items.
-Also happens in categories where there are many
Cognitive Dissonance: Discomfort caused by post-purchase conflict desirable and comparable brands.
(Did I make the right choice?)

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Buyer Decision Process and The Customer Journey

Relevant Internal Psychological Processes
Customer journey: the sum of the ongoing experiences
consumers have with a brand that affect their buying behavior,
Decision Process Stages Psychological Processes
engagement, and brand advocacy over time.

Need Recognition Motivation

Information Search Perception The customer journey: By

understanding the customer
Evaluation of Alternatives Attitude Formation journey, marketers can work to
create brand experiences that
Purchase Decision Integration will result in positive purchase
behavior, engagement, and
Postpurchase Behavior Learning brand advocacy over time.

Tyler Nottley/Shutterstock

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The Buyer Decision Process for New Products The Buyer Decision Process for New Products
Differences in Innovativeness
Adoption process is the mental process an individual goes
through from first learning about an innovation to final regular
use.
• Stages in the process include:

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The Buyer Decision Process for New Products The Buyer Decision Process for New Products
Differences in Innovativeness: Influence of Product
Adopter Categories Characteristics on Rate of
Adoption
Innovators
Relative Advantage: Is the innovation superior to existing products?
Venturesome – they try new ideas at some risk.
Early Adopters
Opinion leaders – adopt new ideas early but carefully Compatibility: Does the innovation fit the values and experience
Early Majority of the target market?
Deliberate – careful, but accepting change more quickly than the average Complexity: Is the innovation difficult to understand or use?
Late Majority
Skeptics – will adopt new ideas or products after the majority Divisibility: Can the innovation be used on a trial basis?
Laggards
Tradition-bounds – critical towards new ideas / will only accept it if the new Communicability: Can results be easily observed or described to
idea has become mainstream
others?

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Stages in Adoption Process

STP-Segmentation, Targeting, Positioning

[Chapter 7]

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Customer-Driven Marketing Strategy STP Overview

STP
FIGURE | 7.1
Designing a Customer-Driven Market
Strategy

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STP Overview Steps in Developing a Marketing Strategy

STP
• Market Segmentation: The process of dividing a market into
smaller groups of buyers with distinct needs and
characteristics.
• Targeting: Evaluating each segment and choosing one or
more of the segments to target.
• Positioning: Arranging for a product to occupy a clear,
1. brainstorm
distinctive, and desirable place relative to competing
3. define 5. choose
segmentation targets position products in the minds of target consumers.
variables

2. evaluate/ 4. select 6. comunicate

select segments target position

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STP OVERVIEW-SEGMENTATION
What Is Market Segmentation?
Market Segmentation:
▪ What:
Process of dividing a large market into smaller target
markets, or customer groups with similar needs and/or
desires

Market segments should: ▪ Why:

(1) have common needs and
(2) respond similarly to a marketing action.

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Costs and Benefits of Segmentation Requirements for Effective Segmentation

We should aim to develop segments that meet the following

Segmentation generates extra costs in every phase of the business! criteria:
• larger research and planning costs
• costs of production are higher • Measurable
• communication costs per contact are higher - Size, purchasing power, and profile of segment
• Accessible
- Can be reached and served
Therefore, segmentation must: • Substantial
• increase sales and/or support higher prices - Large and profitable enough to serve
o specific needs are better satisfied (perceived value is higher) • Differentiable
o marketing communications are more effective - Respond differently
• Actionable
• or increase cost efficiency - Effective programs can be developed
o "waste coverage" is avoided

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Bases for Segmenting Customers

Geographic Segmentation
• When an organization localizes its marketing efforts to
accommodate the unique needs of specific geographic regions
- Knorr Soup
- Fast Food Menus
Geographic
Nations, regions,
cities, zip codes. Demographic
Age, gender, family size
and life cycle, income.

Behavioral
Need / Benefit Based: Benefits sought, needs
Psychographic Behavior Based: Occasions, usage rate, loyalty
Lifestyle, Decision Making: Involvement, expertise
personality.

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Demographic Segmentation
Demographic Segmentation
• Age
• GAP
• Baby GAP, GAP Kids, GAP, ▪ Examples
GAP Maternity ▪ Age, family size, gender, income, occupation,
• McDonalds
education, religion, race, generation, nationality
• Happy Meal
• Arch Deluxe ▪ easy to measure
• Women +50
▪ easy for competitors to measure
▪ may not predict sales

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Demographic Segmentation Demographic Segmentation

• Family • Income Level

• Some products are marketed to consumers with • Some products are marketed to
consumers with different income
special family consideration levels
• Family Life Cycle • Beymen vs Boyner
• Macro vs Migros vs Şok
• Bachelor, marriage, married with children, retired, etc.
• Banana Rebublic / Gap / Old Navy

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Demographic Segmentation Psychographic Segmentation

• Ethnicity
• Some products are marketed • Grouping customers together based on social class,
to consumers from specific lifestyles and psychological characteristics
ethnic backgrounds
(attitudes, interests and opinions)

• How time is spent

• Beliefs
• Socioeconomic characteristics
• Bud o

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Behavioral Segmentation Behavioral Segmentation

• Need Based (Benefits sought) • Markets can be

segmented based on
• Loyalty status the benefits that
• Occasions consumers desire
from using a specific
• User status (Non Users/ First time users / Regulars/ product
Ex-users)
• Usage rate (Light / Medium / Heavy)

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Usage Rate Segmentation Occasions

• Buyers can be grouped according to occasions when they get the
• Markets can be segmented by how often or how heavily idea to buy, actually make their purchase, or use the purchased
consumers use a specific product item.
• 80/20 Principle - 80% of revenue generated by 20% of customers http://www.cartedor.com.tr/media/haberler/12y.jpg

Light Users
80% http://www.markalarkampanyalar.com/market/resimler/ramazan_kampanyalari_1968.jpg

Heavy Users
20%

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Advantages / Disadvantages Evaluating Market Segments

• Attractiveness of the segment
Geographic/ Psychographic / - Growth, profitability, size
Demographic Behavioral - Cost of reaching the segment
Segmentation Segmentation
• Competitive reaction
- Strong competitors? / New Entrants?

• Fit with company strength

- How do the needs of the customers in the segment fit with your company
- Compatibility with company objectives and resources.

FOCUS YOUR RESOURCES ON THE SEGMENT(S) WHERE YOUR ADDED

VALUE IS THE GREATEST!

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Developing Segment Profiles

Example: Air Travel Segment Profiles

Profiling: • Business/Executive:
Inflexible; relatively price insensitive (Small number of
people, but travel often)
who are they? • Leisure Traveler/Student:
what are the age, income, education, household Relatively flexible; very price sensitive (other methods
of travel--e.g., bus, car, train--are feasible; travel may
size, media habits etc.? not be essential) (Very large segment)
• Comfort Travelers:
Comfort (e.g., space, food) important; willing to pay
(Small segment)

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Target Audience Description:

Target Audience Hertz Car Rental

Ahmet Mete… has never rented from Hertz

▪ Target Audience Description ▪ Ahmet Mete, 39, intl sales and marketing mgr., he is married. He has 2 kids, 1 cat.
Lives in Istanbul in an apartment. His wife works, but does not drive. They have a
small car for daily use, but he rents cars on his professional travels. He normally
rents from Avis, but also sometimes uses the local companies as well. He has heard
▪ Rich, complete description of Hertz but has never rented from it. He does not have an opinion about Hertz,
feels indifferent about it. He thinks of himself as “modern” (sophisticated,
▪ “The person in the chair” organized, open-minded, brand-conscious, health-conscious, likes good food,
cultured)
▪ Use both qualitative and quantitative data Attitudes:
▪ Ahmet Mete is concerned about time and quality of life. He looks for customized
and differentiated service. Remains up to date and has knowledge of cars. He is
demanding with himself and with the others. When he travels for business, he
expects to arrive to his meetings on time after a comfortable ride; he cares about
the appearance and the age/technology of the cars he rents; he is technology-
conscious and does not ever want to be out of date.

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Market Targeting Market Targeting

Selecting Target Market Segments Selecting Target Market Segments

FIGURE | 7.2

Market-Targeting Strategies
A target market is a set of buyers who share
common needs or characteristics that the
company decides to serve.

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Market Targeting Market Targeting

Selecting Target Market Segments Selecting Target Market Segments

Differentiated marketing targets several

Undifferentiated marketing targets the different market segments and designs
whole market with one offer. separate offers for each.
• Mass marketing • Goal is to achieve higher sales and stronger
• Focuses on common needs rather position
than what’s different • More expensive than undifferentiated
marketing

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Market Targeting Market Targeting

Selecting Target Market Segments Selecting Target Market Segments

Concentrated (Niche)
marketing
Micromarketing is the practice of tailoring
targets a large share of a products and marketing programs to suit
smaller market. the tastes of specific individuals and
locations.
• Limited company resources • Local marketing
• Knowledge of the market • Individual marketing
• More effective and efficient

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Target Marketing Strategies Market Targeting

Selecting Target Market Segments
• Undifferentiated Marketing (Mass Marketing): A single marketing mix for the entire market.

Marketing Entire
Mix Market

• Differentiated/Segment Marketing: Choosing a targeting strategy depends on

• Multi-segment Marketing: Separate marketing mixes for two or more segments of the market
• Company resources
Marketing Market • Product variability
Mix 1 Segment 1
Marketing Market • Product life-cycle stage
Mix 2 Segment 2 • Market variability
• Competitor’s marketing strategies
• Concentrated (Niche) Marketing: A single marketing mix for one segment of the market (When an
organization concentrates its marketing efforts on a smaller segment of a larger market)

Marketing Market
Mix Segment

• Individual (Micro) Marketing: A marketing mix customized for an individual or organization.

Marketing
Individual Copyright © 2024 Pearson Education, Inc.
Mix

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Positioning Positioning

• Product Position: The way the product is defined by consumers on • Choose a positioning strategy:
important attributes -- the place the product occupies in 1. Identify a set of possible competitive advantages on which to differentiate
consumers’ minds relative to competing products. (points of difference; sources of differentiation)
• Product, Service, Channels, People, Image
• Consumers’ actual perception may be different than firm’s intended
strategy. 2. Select the right competitive advantage to promote:
• How many differences to promote (Unique Selling Proposition?)
• Positioning: Arranging or influencing the product position. It • Which differences to promote (Important, distinctive, superior, communicable,
involves: preemptive, affordable, profitable)

• Implanting the brand’s unique benefits & differences in consumers’ minds

• Designing & executing a marketing program to affect target consumers’ • Communicate the chosen positioning effectively
perceptions of your product on important attributes -- based on consumer
needs & relative to competitors

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Personalized Products
Differentiation

Product differentiation – brands are differentiated based on

features, performance, style or design
Services differentiation – brands are differentiated by services that
accompany product
Channel differentiation – competitive advantage is gained over
channels coverage, expertise, and performance
People differentiation – hiring and training better people than
competitors
Brand Image differentiation –differentiating based on overall
brand image

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Value Proposition Differentiation and Positioning

Selecting an Overall Positioning Strategy
• How a brand will create differentiated value for target segments
and what positions it wants to occupy in those segments.
Picture1 Value proposition is
the full mix of
benefits upon
which a brand is
positioned

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Differentiation and Positioning Differentiation and Positioning

Communicating the Position-Formula Method
Communicating the Position-Formula Method

▪ Structure: For [target segment], the [brand / concept]

is the [primary important claim + point of difference]
Positioning statement summarizes because it is the [single most important factor (reason
company or brand positioning using this to believe the claim)].
form: To (target segment and need) our
(brand) is (concept) that (point of
▪ Example: For 18 year-olds applying to college, the
difference) College of Administrative Sciences at Koç University is
the best place to get business education because it has
the best marketing professors.

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Differentiation and Positioning

Communicating the Position-Formula Method
Perceptual Mapping
A mean of displaying, in two dimensions, the location of brands in
Who?
the minds of consumers (as consumers perceive them)
Target
customer • Which dimensions are important to consumers in the product
What? To business managers and professionals class?
Value o This gives you the map’s dimensions.
engaged in making time sensitive decisions
proposition
about international business, DHL delivers
Among? on time, compared to other courier • How do consumers perceive our brands and competitors’ brands
Competitive companies, because its pickup,
set transportation, and delivery system is
on these dimensions?
wholly-owned and managed by DHL o This gives you the product locations on the map.
How?
Capabilities personnel, not by third party providers.
➢Brands perceived as similar are located close to each other
➢Brands perceived as dissimilar are further apart

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Differentiation and Positioning

Perceptual Mapping

Subway McDonald’s Wendy’s Burger King KFC

Positioning maps show Variable Value Value Value Value value
consumer perceptions Flavor 4 6 5 7 4
of marketer’s brands Convenience 6 8 6 5 4
versus competing Assortment 8 6 6 6 3
products on important
Fresh/healthy 8 4 3 3 2
buying dimensions.
Kid friendly 4 8 5 7 3
Good value 8 4 4 4 4

IMPORTANT NOTE: Perceptions and Reality might be different!

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Differentiation and Positioning

Perceptual Mapping: Applications Communicating and Delivering the Chosen Position

• Who are our competitors?

• On what dimensions do we compete? Choosing the positioning is often easier than
implementing the position.
• Where to introduce new products?
• You also need to be aware of consumer preferences
• Look for locations with relatively more consumers but limited competition
Establishing a position or changing one usually
• Product Repositioning takes a long time.

Maintaining the position requires consistent

performance and communication.

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Differentiation and Positioning

Communicating and Delivering the Chosen Position How to Approach a Positioning Problem?
Move perception of your product closer to segment’s ideal point. Jack Trout and Al Ries
Our product - - - - > Customers’ ideal point
▪ What position, if any, do we already own in the prospect’s mind?
Move the segment’s ideal point closer to your product.
▪ What position do we want to own?
Customers’ ideal point - - - - > Our product ▪ What firms must be ‘’outgunned’’ for us to establish that position?
Move perceptions of competitors’ products further from segment’s ▪ Do we have enough marketing money to occupy and hold that
ideal point
position?
< - - - Customers’ ideal point … Competitors’ products - - - >
▪ Do we have the guts to stick with one consistent position concept?
▪ Does our creative approach match our positioning strategy?

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Business Buyer Behavior

▪ The buying behavior of the
organizations that buy goods
and services for use in the
production of other products
and services sold, rented or
supplied to others.

Business Buyer Behavior ▪ Purchases are not for personal

[Chapter 6] use or consumption

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Business Markets What is Business Marketing?

Lopez Foods
-Beef patties Business products:
supplier Are used to manufacture other products
Become part of another product
Keystone Foods Gaviña Aid the normal operations of an organization
-Chicken nugget Gourmet Coffee Are acquired for resale without change in form
supplier -Coffee supplier

Business-to-Business (B-2-B) Marketing: marketing to

businesses rather than end-consumers
ex: selling PCs to a university for use in PC labs

Consumers Markets

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Characteristics of B2B Markets Characteristics of B2B Markets

Market Structure Nature of the Buying Process

▪ Fewer but larger buyers ▪ More people involved -- often with different goals

▪ Geographically concentrated ▪ More complex decisions

▪ Derived demand (from consumer demand) ▪ Process is more professional / formalized / explicit / rational

▪ Price-inelastic demand (in the short term) ▪ Buyer and seller are more dependent on each other

▪ Fluctuating Demand ▪ Closer, long-term relationships with customers

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Business Buyer Behavior Business Buyer Behavior

Major Influences on Business Buyers

FIGURE | 6.1 FIGURE | 6.2 Major Influences on Business Buying Behavior

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Characteristics of B2B Markets

Marketing Mix
Differences Between B2B & B2C
▪ Product B2B B2C
▪ Technical /complex
▪ Includes semi-finished goods and raw materials
▪ Important: delivery time, technical / financial assistance, after-sale
service

▪ Direct selling (shorter distribution channel); personal selling

▪ Advertising is less emphasized -- often technical

▪ Price is often negotiated, or bidding

▪

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Business Buyer Behavior Types of Buying Situations

Newness

Buying Center
New Task
▪ The decision-making unit of a buying organization
▪ Includes all individuals and units that participate in decision
making
▪ Roles include: Modified
▪ Users Rebuy
▪ Buyers
▪ Influencers
▪ Deciders Straight
▪ Gatekeepers
Rebuy
Involved Decision Making
# of Decision Participants

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Straight Rebuy Modified Rebuy

▪ Product specifications are not modified
▪ Intention to modify specifications, prices, terms, suppliers, etc.
▪ Fewer people involved, generally one person
▪ More participants than straight rebuy
▪ Low perceived risk
▪ A “mini” version of new task
▪ Routine / automated
▪ A window of opportunity for “out” suppliers
▪ “In supplier”

▪ “Out suppliers” find it hard to get a “foot in the door”, they pray
for an “in supplier” to mess up, or requirements to change

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New Task Stages in the Business Buying Process

▪ Big decision making unit -- depending on cost and risk

▪ Many people are involved -- some with indirect influence
▪ Lots of information
▪ Product, suppliers, payment terms, delivery times etc. are
decided

▪ Slower, longer process

▪ Any supplier can win

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 10/21/2024

Stages and Types of Business Buying

Buying Situations
New Modified Straight
Stages of the Buying Process Task Rebuy Rebuy

Problem Recognition yes maybe no

General Need Description yes maybe no
Product Specification yes yes yes
Supplier Search yes maybe no
Proposal Solicitation yes maybe no
Supplier Selection yes maybe no
Order-routine Specification yes maybe no
Performance Review yes yes yes

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